I think it's the snob factor people are after. If you pay a high annual fee and get very little in return it's supposed to mean you are better than others, I guess.
An AmEx warning. They tout a 'No fixed spending limit' in their commercials. Their spending limit is based on your average number of transactions. That means if you spend and pay off an average of $500 a month on their card, that's your limit, or somewhere near your average spending rate. I had a friend who used his AmEx almost exclusively. I think he liked the perceived prestiege of using the card. Anyway, he took a vacation in the Bahamas and just before he left he made several large purchases, luggage, clothing, etc. He knew his was near or slightly above his monthly spending, but he kept thinking of AmEx's advertisment regarding no fixed limit. When he arrived at his hotel and tried to used the card it was declined because he had reached the limit. He called AmEx right then and asked them to increase his limit. This is a person who had been a customer of AmEx for many years and never had a late payment. In their infinite wisdom they declined to temporarily bump the guy's limit and he had to wire money (with additional charges involved) directly from his bank account. He was so pissed he quit using AmEx altogether and will never use their card again.